The Treasury Department and the Internal Revenue Service (IRS) have issued Notice 2023-7 to provide interim guidance in advance of the new corporate alternative minimum tax (CAMT) taking effect. The CAMT will generally apply to large corporations with average annual financial statement income exceeding $1 billion. Clarification and calculation instructions is provided. Also included, are answers to basic questions about how certain transactions may be treated and certain adjustments that may be considered for purposes of the alternative minimum tax, including adjustments for certain tax credits and depreciation. An easy method for determining that the new alternative minimum tax does not apply to smaller corporations is defined too.
Notice 2023-7 solicits comments on the rules contained in the notice and certain other issues under consideration. The Treasury Department and the IRS recommend that comments be submitted within 60 days after the date on which Notice 2023-7 was published.
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